The European Parliament's ECR group has proposed deleting the mandatory minimum excise duty for nicotine pouches from the recast directive on tobacco excise duties, in a single amendment to the committee report. Amendment 88, submitted to the plenary report A-10-2026-0161, would remove Article 4(4), which required Member States to ensure that from 1 January 2032 the excise duty on nicotine pouches is at least 50% of the retail selling price or the Union rate of EUR 143 per kilogram.
The amendment, published on 10 June 2026, targets the most contested element of the legislation: the harmonised tax floor for novel nicotine products. If adopted, the directive would no longer contain any binding Union-wide minimum excise duty for nicotine pouches, leaving Member States free to set their own rates without a mandatory floor. This could lead to significant divergence in taxation across the EU, potentially creating internal market distortions and tax competition.
The ECR's proposal signals fundamental disagreement with imposing a high, harmonised minimum tax on these products at this stage. The group argues that such a tax is premature, could harm the nascent market, or should be left entirely to Member State discretion. The absence of amendments from other political groups — including EPP, S&D, Renew, Greens/EFA, The Left, and ID — can be interpreted as tacit acceptance of the original text's approach to nicotine pouches. Those groups appear to support the principle of setting a Union-wide minimum excise duty for these products, viewing it as necessary to prevent regulatory gaps, protect public health, and ensure fair competition with taxed tobacco products.
Impact on stakeholders The amendment would have significant implications for several stakeholders. Nicotine pouch producers and distributors would benefit from the absence of a mandatory EU-wide minimum tax, potentially facing lower or more varied tax burdens across Member States, reducing compliance costs and allowing market growth. National tax authorities would gain greater discretion to set their own excise rates, but could face pressure to lower taxes to attract business, potentially reducing fiscal revenues. Public health advocates would see the deletion as a setback, arguing that low taxes on novel nicotine products undermine efforts to reduce overall tobacco and nicotine consumption and could lead to increased use, especially among young people. Traditional tobacco manufacturers might face uneven competition, as nicotine pouches could be taxed at lower rates in some Member States, creating a price advantage.
Institutional follow-up The plenary report, prepared by the Committee on Economic and Monetary Affairs, is scheduled for debate and vote in the European Parliament. The Council must adopt its position before trilogue negotiations can begin. The ECR's amendment, if successful, would represent a major concession to the industry and a significant change to the directive's harmonisation ambition.
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